Stock Analysis: Pfizer

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Pfizer Inc bears the ticker symbol PFE, and this is my first mention of PFE for this new Viking Portfolio. However, I have mentioned and selected PFE for several of my previous seven dog of the week folios.

Pfizer is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 product sales).

While it historically sold many types of healthcare products and chemicals, now, prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, cancer drug Ibrance, cardiovascular treatment Eliquis, and immunology drug Xeljanz.

Pfizer sells these products globally, with international sales representing close to 50% of its total sales. Within international sales, emerging markets are a major contributor.

The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc.

Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

Three key data points gauge PFE or any dividend paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

PFE Price

Pfizer Inc's price per share was $39.88 at Tuesday’s market close. In the past year, PFE's share price fell $10.39 or about 20.7%.

If PFE stock trades in the range of $30.00 to $50.00 this next year, its recent $39.88 share price might reach $48.00 by next year. That upside estimate of $8.12 is based on a little over half the median of price targets from 22 analysts tracking PFE for brokers.

PFE Dividend

Pfizer Inc most recent quarterly dividend of $0.41 casts a forward annual yield of 4.11%.

PFE Returns

Adding the $1.64 annual estimated

PFE dividend to about half the median of 22 analysts, one-year price upside estimates amounting to $8.12 reveals a $9.76 potential gross gain estimate per share.

At Tuesday’s $39.88 closing price, a little under $1000 would buy 25 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.40 per share.

Subtract that maybe $0.40 brokerage cost from my estimated $9.76 gross gain makes a net gain of $9.36 X 25 shares = $234.00 for a 23.4% net gain including the 4.11% annual dividend yield.

In the next year our $1K investment in shares of PFE should generate $41.10 in cash dividends. Furthermore, a single share of PFE at Friday’s $39.88 price is about $1.22 less than the estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is probably a proper time to buy Pfizer Inc shares, based on their dividends for 2023. The current dividend from $1K invested is $1.22 greater than the Pfizer Inc single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Pfizer Inc. Only time and money invested in this stock will determine its future market value.

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